NFTs and a Thousand True Fans - Andreessen Horowitz
Non-fungible tokens offer fundamentally better economics for creators by removing rent-seeking, enabling granular pricing, and reducing customer acquisition costs.
I would love to build something with NFTs! I have many ideas, but clearly, the environmental issue refrains me.
There are platforms such as Kalamint (https://kalamint.io) that are based on more environmentally friendly proof-of-stake consensus mechanisms such as Tezos.
Flow, the chain build by the team that created CryptoKitties, is also proof of stake and could be a good choice.
Thanks! I will check
If you want to learn more about nft feel free to join the nft discord
Ok I have a question, it might be dumb, sorry I don’t know much about NFTs.
This is my current understanding of the process of creating an NFT:
The NFT is unique, and so is valuable. Great.
What about the original file, if someone makes a copy of the original cool file between steps 2 and step 3, does the NFT value halve?
Does the NFT owner own the original file and all copies?
In my understanding, you own the unique token on the blockchain, so everyone can know who won what, and you can even have the history (before Tom, Paul held this NFT). The token can't be copied or altered, but the original artwork can. Finally, in the physical world, it's the same. You can own a perfect copy of an artwork, but only the certified one is valuable.
So to be able to sell an NFT you just have to have in your possession the NFT and either:
There’s not really such a thing as “the original file”, unless you have the original hard drive to which it was written. If you download it, move it to a flash drive, etc, you have the same identical copy as everyone else.
Some follow up questions:
Is there a way to check the ownership of a file?
Can someone else create another NFT with the same file?
If I sell an NFT of a file that I host on my website, can the person that bought the NFT force me to remove the file from my website?
I really only have a shallow knowledge of how NFTs work, so don’t quote me on this. My understanding is: yes, kind of, and no.
The ownership of the file should be recorded on the blockchain. I suppose someone else could have an NFT of the same file, but you should be able to prove you owned it first.
Buying an NFT, like buying a piece of art, doesn’t give you the copyright. So the NFT owner can’t force you to stop distributing copies, let someone use it in a movie, etc — only the copyright owner can do that.
Here is a good non technical summary: https://alex-pardee.medium.com/what-is-an-nft-from-an-artists-perspective-db348bbde0b1
Since there is no such thing as proof of creation, it seems like the critical thing is to be the first to mint an NFT for a particular file.
For new creations that’s relatively easy because the creator can just do it themselves when they create the file.
There’s no guaranty that actually happened though.
Anyone can just start minting NFTs for files that the creator for one reason or another didn’t mint themselves and start selling them.
A system where that could happen seems a bit suspect, doesn’t it?
Sure, but that’s not unique to NFTs. Someone can already try to trademark your company name, claim you plagiarized their song, etc. It's not like the blockchain space isn't already rife with fraud 🙃
With physical items it’s a lot more difficult because a scammer has to have the item in their possession to pass it off as something they made.
However with NFTs this limitation is gone, they just need a copy, and that’s pretty easy since people share so much of their content online.
It’s almost like in the future you’ll need to mint an NFT for every file you publish online, just in case.
There’s something super weird about NFTs, but I can’t quite wrap my head around it yet. They are sort of like writing a paper receipt when you sell something, but in the physical world the receipt isn’t worth anything. Then again....maybe it is, I bet if I had an Elon Musk receipt it might be worth something.
Do you know if you buy an NFT that you minted? i.e buy your own NFT
@jakelazaroff replying here since the comment system isn’t giving me a reply button to your comment starting with “The weird thing is” and it’s the closest reply button in the comment tree. Is there some limit to number of comment in a thread on IH?
It seems to me that the difference is mostly perception. But perception is quite powerful in some situations.
Sure, all these things happen on the internet, but people are mostly aware of that, or at least to be careful, and that there are lots of false claims etc
But with NFTs it’s a sort of “official document”, so it has a legitimacy associated with it, except anybody can create it.
So creators might end up in a situation where they are forced into creating NFTs for their creations, out of fear that someone else could make a claim for their creations, and have people believe it.
I only mention buying your own NFTs because my understanding was that an NFT only exists after a purchase, but if you can create an NFT and it’s in the blockchain at that point, then no need to purchase it.
The weird thing is that you're buying something that has no scarcity. There can be infinite perfect reproductions of it. And the value is entirely arbitrary — it's literally just because people care about a few bits that say they "own" an mp3. The same reason people care about owning an original Mondrian, even though you might be fine with just buying a print ¯\(ツ)/¯
I don't see why you'd need to register an NFT for everything you put online. If I put a song online, someone can already claim they wrote it first. If I publish a photo I take, someone can already try to sell prints of it. So I don't really see how this creates any new openings for scammers that don't already exist.
You can probably do some trickery to buy an NFT that you already own, but I think that's basically the same as secretly buying your own painting.
Actually just the token, it's like to have one Bitcoin or ETH the only difference is that NFT are not fungible so each token are different. and then the token will have a unique data (id or can be a file directly embed in the token data). fun fact: when you download the Bitcoin blockchain on your computer, you can have illegal content inside: https://thenextweb.com/hardfork/2018/03/21/bitcoins-blockchain-content-land-in-jail/
How does that even make any sense though?
If there are no copies of the file left in existence then the NFT surely has no value. Otherwise it’s like saying that the receipt for buying a physical item holds the value of the physical item.
Not sure NFT have something to do with engagement. But that's a super interesting topic for sure.
I'm looking forward to see how DeFi will impact the creator economy.
Do you guys know any maker I should follow about this topic?
Shaan Puri is super into NFTs and he's pretty transparent about sharing his experiments in the space.
Best example is this podcast episode he did with @samparr. I think the NFT convo happens at the 20 minute mark?
If you want to buy, sell or create NFTs feel free to join the discord. We’re teaching each other everything you need to know
Hey folks, great to see NFT mentioned here, found it a really interesting space. I recently launched nftcore.io - we cover interviews, updates and informative content. I’d love to hear your feedback and what you’d like to know and see here?
It took me a while to get my head around how NFT works so feels good to be giving back.
would somebody mind giving an elevator description of what NFT is - pretend you're in the elevator with somebody who isn't going up to the Crypto floor, but is still fascinated by it all. and perhaps add a real-world example ;-)
In the physical world an artist may create a limited edition of 50 prints. You can buy & sell these prints. You can also make a copy of a print but it will of course be a copy and not as valuable. Each "print" of a limited edition NFT is identified by a token on the blockchain, so really you are buying and selling blockchain tokens. You can make a copy of an NFT (e.g. it may be a gif) and hang it on your wall/desktop but it will not have the token and thus will not have the associated value. Yes the world is mad.
Let's say you are a popular gaming youtuber and you want to give NFTs to your 1000 most devoted fans. You want those NFTs to be linked to images which are basically just copies of your avatar with randomized color schemes. You would deploy smart contracts on the blockchain that allow them to own these tokens, and trade it to whoever they want. Basically, tokens that are unique and are on the blockchain.